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Which is better, comprehensive plan or high-deductible plan with HSA?

Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003. HSAs are a form of medical savings account that must be accompanied by a high-deductible health insurance plan. HSAs allow individuals/employers to set aside money on a pre-tax or tax-deductible basis and then withdraw the money tax-free to pay qualifying medical expenses. Use this calculator to help compare a traditional, low-deductible health plan to a high-deductible health plan accompanied by an HSA to cover out-of-pocket expenses.

Comprehensive Health Plan

Deductible ($)

Coinsurance (0% to 100%)

Maximum annual out-of-pocket (OOP) ($)

Monthly insurance premium ($)

High-Deductible Health Plan with HSA

Deductible ($)

Coinsurance after deductible is met (0% to 100%)

Maximum annual out-of-pocket (OOP) ($)

Monthly insurance premium ($)

Other Assumptions

Anticipated yearly medical expenses(incurred by one individual) ($)

Marginal tax rate (state/federal plus 7.65% SS/Medicare) (0% to 75%)

Plan type

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.